The U.S. SEC Twitter Account Was Compromised

The U.S. Securities and Exchange Commission's (SEC) Twitter account was compromised yesterday, leading to an unauthorized tweet regarding spot Bitcoin ETFs.

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Account Compromise: The SEC's Twitter account (@SECGov) was hacked, and an unauthorized tweet regarding Bitcoin ETFs was posted. This post falsely suggested that the SEC had granted approval for highly anticipated spot Bitcoin ETFs.

Method of Hack: The compromise occurred not through a breach of Twitter’s systems, but due to an unidentified individual gaining control over a phone number associated with the @SECGov account. This individual likely convinced a third-party telecommunications provider to hand over control of the phone number. If the hacker also knew the correct email address used for the account, they could use the phone number to reset the account’s password and gain access.

Lack of Two-Factor Authentication: It was confirmed that the @SECGov Twitter account did not have two-factor authentication (2FA) enabled at the time it was compromised.

Market Impact and Reaction: The false tweet caused Bitcoin’s price to spike, jumping to nearly $48,000, before falling back down. The post was online for approximately 30 minutes before being deleted. SEC Chair Gary Gensler later clarified that the SEC had not approved the listing and trading of spot Bitcoin exchange-traded products.

Official Responses and Concerns: The incident raised serious concerns regarding the SEC’s internal cybersecurity procedures. U.S. Senators J.D. Vance and Thom Tillis wrote a letter to SEC Chair Gary Gensler, demanding an explanation for the incident and raising concerns about the Commission's cybersecurity practices.

Public Reaction and Comments: The event prompted calls for transparency and an official investigation into the incident. Comments from figures such as U.S. Senator Bill Hagerty highlighted the need for accountability and answers regarding the SEC's cybersecurity measures.

This incident underscores the importance of robust cybersecurity measures, including the use of two-factor authentication, especially for high-profile and influential organizations like the SEC. The quick spread of misinformation following the false tweet also highlights the significant impact social media can have on financial markets.